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Question - St partnership had the following assets: inventory value $30,000, basis$ 12,000
Land-value $90,000, basis $48,000
Inventory is a section 751 asset and each partner has an outside basis of $30,000.S,a 50% partner,and her partner, received partial distribution from the partnership.S received land worth$30,000 with a basis of $16,000: T received inventory with a basis of $12,000. What is T's recognized gain,ignoring partnership income.
$7,000 capital gain
$7,000 ordinary gain
$9,000 ordinary gain
$14,000
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